Half The Oil Price But Four Times The Free Cash Flow

By Keith Schaefer Half the oil price but 4x the free cash flow! Sounds like a pitch from Barnum & Bailey’s circus, doesn’t it–Step right up folks and see it with your own eyes!
I’m going to show this magic trick–starting with the chart below. In 2017 at $50 oil, Vermilion Energy (VET-TSX/NYSE) is going to have four times more free cash flow than it did in 2014/2014 when oil was $100 per barrel.
This is the best kind of magic……the profitable kind!

Ladies and gentlemen, allow me to walk you through it.
The rising red line depicts Vermilion’s total production by year. Production